- Bitcoin price has the potential for recovery above $10,000 as long as bulls hold above the 50-week SMA.
- BTC/USD is trading within a descending channel; a breakout above the channel resistance could pull the price above $14,000.
Bitcoin price made a tremendous recovery from the lows recorded in March at $3,800. The crash back then was triggered by fear and panic due to the COVID-19 pandemic. Financial markets across the world including the crypto market suffered greatly. The recovery was steady and quick until Bitcoin hit a wall around $10,500 in the first week of June.
The reversal that ensued saw Bitcoin test levels under $9,000 with $8,800 functioning as the key support. The 50-week SMA also stood its ground, preventing further losses towards $8,000. On the upside, attempts to push BTC/USD back to $10,000 have been thwarted by increased selling pressure. For a few weeks now, Bitcoin has been trading in consolidation between $9,000 support and $9,400 resistance.
The weekend session is dominated by the same sideways traction action. The situation is likely to remain the same, especially with the RSI settling at the midline. Buying pressure is not entirely non-existent as shown by the MACD’s position above the midline. Moreover, with the price holding above the 50-week SMA, there is a potential for recovery in the near term.
Bitcoin is also trading within a wide descending channel. The support of the channel prevented dire losses during the March crash. On the flip side, the channel resistance has continued to hinder upward growth. If Bitcoin surges above the channel resistance, investors can then anticipate a breakout above $14,000.
BTC/USD weekly chart
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